What is the definition of an NRI?
An NRI or Non Resident Indian is an Indian Citizen living outside India for a minimum of 183 days in 1 financial year for the purpose of employment, business or vocation (occupation for which an individual is trained).
Indian Citizens who have gone out or are staying abroad for some other purpose with an intention to stay outside India for an uncertain period (job or assignments where you don’t know when you will return to India) can also be termed as NRIs.
Other Specifications of an NRI (For people related to government and its associated organisations):
- Citizens of India who are working abroad on assignments for foreign agencies of government like United Nations Organization (UNO) or its affiliates, World Bank, International Monetary Fund (IMF) etc.
- Officials who are deputed outside India on temporary assignments or official postings belonging to Central/State Government or any Public Sector Undertaking
- Officials deputed on Indian Diplomatic Missions abroad are also considered NRIs
NRI Status Eligibility
In order to become an NRI, there are certain criteria one must fulfill, which are as follows:
1. A citizen of India must stay overseas for 182 days or more in one financial year.
2. If a citizen of India stays in India for less than 365 days in the last 4 years from the year of assessment and less than 60 days during the year being tested for eligibility.
How to Calculate 182 Days for NRI Status
To calculate 182 days for an NRI (Non-Resident Indian), you need to determine their residential status as per the Indian Income Tax Act.
Under the Income Tax Act, an individual’s residential status is categorized into three types – Resident, Non-Resident, and Resident but Not Ordinarily Resident.
To determine the residential status of an NRI, the following criteria are used:
- If an NRI has stayed in India for 182 days or more in a financial year (April 1 to March 31), they will be considered a resident for tax purposes.
- If an NRI has stayed in India for less than 182 days in a financial year, they will be considered a non-resident for tax purposes.
Therefore, to calculate 182 days for an NRI, you need to count the number of days an NRI has stayed in India during a financial year. If the count is equal to or more than 182 days, they will be considered a resident for tax purposes. If the count is less than 182 days, they will be considered a non-resident for tax purposes.
NRI Status Calculator
You can calculate your stay in India and figure out whether you are eligible for the NRI Status or not. To know more about how to calculate your status, click here.
With SBNRI, you can open your bank accounts effortlessly while being abroad in the top banks of India. To open an NRI Bank Account instantly, click the button below.